Indonesia: Cryptocurrency Regulations and Market Development

Crypto Adoption Trends in Indonesia

Indonesia’s cryptocurrency market has expanded rapidly in recent years, establishing the country as a hub for digital technology innovation. Indonesia climbed dramatically in the global crypto adoption index, moving from 20th to 7th place. This swift rise highlights strong enthusiasm and widespread acceptance of cryptocurrency in emerging markets like Indonesia.

A recent Coinfest Asia report identifies Indonesia as a major player in the global crypto industry with tremendous potential for the years ahead. The Indonesian crypto market is especially dynamic, fueled by a young, tech-savvy population. The number of crypto account holders in Indonesia has surpassed those with stock market accounts, now exceeding 16 million users.

In July 2023, Indonesia became the first nation to launch a national crypto exchange, PT Bursa Komoditi Nusantara—known as the Commodity Futures Exchange. Rather than competing with leading global trading platforms, the National Crypto Exchange aims to provide robust regulatory infrastructure for the domestic market.

Indonesia’s Crypto Regulatory Framework in 2024

Indonesia’s crypto regulations feature several key provisions:

• Bappebti Regulation No. 8/2021: Guidelines for Physical Crypto Asset Market Trading on the Commodity Exchange, as amended by Bappebti Regulation No. 13/2022.

• Bappebti Regulation No. 4/2023: Amendments to Bappebti Regulation No. 11/2022 on the List of Crypto Assets Tradable on the Physical Crypto Asset Market.

• Law No. 4/2023: Development and Strengthening of the Financial Services Sector (Financial Omnibus Law).

The Commodity Futures Trading Regulatory Agency (Bappebti), under the Ministry of Trade, currently oversees crypto asset and futures trading in Indonesia. With Law No. 4/2023, regulatory authority for crypto assets will transfer to the Financial Services Authority (OJK) in January 2025.

Ministry of Trade regulations confirm that crypto trading is legal in Indonesia. While crypto cannot be used as a payment method, it is permitted as a tradable commodity. Bappebti has approved 229 crypto assets for trading within Indonesia.

To start a crypto business in Indonesia, investors must become certified Physical Crypto Asset Traders and meet these requirements:

• Minimum paid-up capital: IDR 50 billion

• Minimum equity: IDR 40 billion

• PSE (Electronic System Provider) accreditation from the Ministry of Communication and Information

• A business plan and 24-month financial projections

• Compliance with Bappebti’s prerequisite systems

Crypto assets must comply with national standards for risk assessment, anti-money laundering (AML), and counter-terrorism financing (CTF). Regulations require Bitcoin traders to retain transaction histories for at least five years, operate servers domestically, and restrict crypto trading on Indonesian futures exchanges to commodity status—prohibiting use as payment instruments.

In March 2024, Indonesian financial authorities introduced new crypto regulations. The OJK worked with Malaysia, Singapore, and Dubai to develop a comprehensive crypto policy framework. The Financial Services Authority (OJK) issued new rules for integrating technological innovation into the crypto sector, effective January 2025. These regulations include customer protection guidelines, a regulatory sandbox for new technologies, and mandatory reporting of test outcomes. OJK, together with Bappebti and Bank Indonesia, is forming a transition team to oversee the shift in digital financial supervision.

Legal Status Summary

Indonesia permits crypto as a tradable commodity on licensed platforms, but prohibits its use as a payment method.

• Bitcoin: Legal, as a commodity only
• NFT: Legal
• Mining: Legal
• Trading: Legal
• DeFi: Legal

Crypto Taxation Laws

Indonesia currently taxes crypto as a commodity; this may change when oversight transfers to the Financial Services Authority (OJK). Crypto is subject to both value-added tax (VAT) and income tax. In recent years, Indonesia has imposed a 0.1% income tax on crypto earnings and VAT on crypto purchases.

Future Outlook and Challenges

Cryptocurrency and blockchain technology are rapidly evolving sectors with the potential to reshape the global economy. As one of Southeast Asia’s largest economies, Indonesia is poised to play a leading role in shaping this technological future. The Indonesian government has built a regulatory environment that supports cryptocurrency and blockchain development. Bappebti’s launch of a national crypto exchange signals strong government backing for the crypto market’s growth. Combined with a growing, tech-savvy youth population, these policies have created fertile ground for crypto innovation.

In July 2023, Indonesia launched its national crypto asset platform, functioning as both a trading venue and clearinghouse. This initiative aims to equip regulators with comprehensive transaction records and enhance their oversight. The platform represents the world’s first government-backed cryptocurrency exchange. Bappebti is responsible for supervising this new entity.

FAQ

What is Indonesia’s current cryptocurrency regulatory policy?

Indonesia adopts a multi-layered regulatory approach to cryptocurrency, promoting legal market activity, strengthening government oversight, and aligning with international AML standards—without banning crypto trading.

Is cryptocurrency trading legal in Indonesia?

No. Cryptocurrency trading is not legal in Indonesia. Bank Indonesia prohibits crypto transactions and requires all financial transactions to be conducted in Indonesian Rupiah. This restriction remains in force.

Which crypto exchanges are government-approved in Indonesia?

As of January 2026, 29 crypto exchanges have received official licenses from the Indonesian government. All legally operating crypto exchanges must hold a license and be registered with the government’s regulatory system to facilitate user transactions.

How does Indonesia tax income from cryptocurrency transactions and holdings?

Indonesia levies a 0.1% income tax on crypto transaction earnings and VAT on crypto purchases. This tax regime has been in effect since 2022.

What is the scale of Indonesia’s cryptocurrency market and its growth prospects?

Indonesia’s crypto market is expanding rapidly, with inflows totaling USD 1.57 billion in 2023–2024. DEX trading accounts for 43.6% of activity, and regulatory strengthening indicates a bright outlook for future growth.

What is Bank Indonesia’s latest policy position on cryptocurrency?

Bank Indonesia prohibits cryptocurrency as a payment method, but allows crypto asset trading under BAPPEBTI supervision. The current policy maintains openness alongside strict oversight to protect consumers.

What are the requirements to buy and hold Bitcoin in Indonesia?

In Indonesia, individuals can purchase and hold Bitcoin through platforms registered with Bappebti. You must provide valid identification, a local bank account, and complete KYC verification. There’s no cap on individual ownership, but large transactions may require extra documentation under AML regulations.

What are Indonesia’s regulations on stablecoins and ICO projects?

Indonesia prohibits ICOs and enforces strict regulations on stablecoins. Digital assets are governed under Bappebti Regulation No. 8/2021, which classifies and sets out rules for digital asset holders, who must comply with all relevant requirements.